Businesses urged to back £1bn City Deal bid

Published Monday, 17th August 2015

Businesses from across Edinburgh and the South East of Scotland have today been urged to back a £1bn bid to accelerate growth across the region.

Over 100 business leaders gathered for a breakfast briefing at the
EICC to hear more about initial proposals
for a City Deal that would see greater autonomy and decision making powers,
increased opportunities for learning and skills development and investment in
infrastructure.

The bid partners – East Lothian, City of Edinburgh, Fife,
Midlothian, Scottish Borders and West Lothian Councils – believe the deal will
accelerate growth, allowing the region to compete on an increasingly
competitive international stage, deliver sustained economic growth and
tackle deprivation and inequality.

The bid is being developed for submission to the Westminster and
Scottish governments in early September. The ambition is to secure £1bn of
funding and it is estimated that an additional £3.2bn worth of private sector
investment could be leveraged.

Speaking on behalf of the six local authorities, City of Edinburgh
Council Leader, Andrew Burns,
said: “We are asking businesses to pledge their support for the Edinburgh and
South East Scotland City Region Deal to help accelerate the growth of
the region, Scotland and the UK.

“Together, across the region, we are responsible for over 30% of
the Scottish economy and are a key driver of the UK. Edinburgh is the most
prosperous city in the UK outside London and the most productive in Scotland.

“As a result of this, people may question the need for a City Deal
here, but I would urge them to look below the surface and not to take our
success for granted. We are also a divided region, with significant numbers
missing out on the success of the many.

“In the next 20 years, there will be 200,000 more people living
here, placing yet more strain on our infrastructure, housing stock and
community services. This isn’t only about accelerating growth; it’s about
putting in place the fundamentals to cope with it in a sustainable and
equitable way.”

Ernst & Young is supporting the partners in developing the
Deal and Mark Gregory, Chief Economist, set out his long term vision for the
region’s economy at this morning’s event.

He said: "This is a game changing bid with the UK and
Scotland governments. It's vital in continuing to make the region, and Scotland
as a whole, an attractive place to live, work, do business and invest in. It's
about strengthening infrastructure, connectivity, innovation, equality, culture
and skills to remain competitive on both a local and global stage.

"The ambition, vision and collaboration of the local authority partners
involved to bring fairer growth, greater productivity and more opportunity to
people living in this diverse region is inspiring."

Hugh Rutherford, Chair of the Edinburgh Business Forum, added: “The Edinburgh and
South East Scotland City Region deal is an important initiative that will help
develop the region’s economy while tackling poverty and inequality. There is
clearly a lot of business support behind this bid as seen by the discussions
that took place today.

“Edinburgh needs its City region and its City region needs
Edinburgh – the future of the South east of Scotland and Scotland as a whole
depends on a city region wide deal.”

Assuming a positive response from ministers, detailed work on
prioritising potential investment would continue in partnership with
representatives from both governments.